GQG FUM declines after insto withdrawal

Equity de-risking by institutional clients has led to a downturn in funds under management at GQG.

In a quarterly update, the firm said FUM had declined from US$87.4 billion ($136 billion) at the end of August to US$79.2 billion at the end of September. The firm saw US$0.8 billion in net inflows.

GQG said institutional clients had been the main cause of the outflows, particularly in the UK.

“We have continued to see equity de-risking among institutional clients and ‘tax loss harvesting’ among retail clients, which have driven higher outflows during the quarter. In particular, the recent extreme volatility in gilts and currencies contributed to gross outflows of roughly US$1.5 billion from our UK-domiciled clients.”

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However, the firm said the Australian market, which was faring better than other global economies, had seen “notable momentum” as well as the firm’s US Equity and dividend income strategies.

The largest outflows were seen in the global equity division which declined by 12% from US$26 billion to US$22.8 billion while emerging markets equity and international equity were both down around 8%.

Last week, Magellan stated that half of its $3.2 billion institutional outflows incurred during September had come from an institutional client who was dealing with liquidity requirements while an institutional client withdrew $1 billion from an iShares ETF